 In November, Ameren filed a motion before the Illinois Commerce
Commission asking to withdraw the $40 million electric portion of
its natural gas and power rate-hike request, which began at $111
million but has been whittled down to $90 million over the course of
the case.
Normally, consumer advocates would welcome a utility's offer to
drop a rate hike. However, as part of that rate case, an
administrative law judge recently recommended that the ICC order the
company to give electric customers a $41.1 million rate decrease.
The ICC is set to decide the case in January.
"It's simply not fair for Ameren to duck out of a rate cut for
its customers," said David Kolata, executive director of the
Citizens Utility Board. "We're asking the company to do the right
thing and give its customers the rate decrease they deserve."
The response to Ameren's motion, filed jointly by the attorney
general and CUB, is the latest shot in a yearlong battle against the
company's rate-hike request. CUB estimates the company's proposal
could cost customers up to $100 a year. Ameren, which made $657
million in profits last year, has raked in more than $200 million in
rate hikes for its Illinois utilities since 2008.
The Illinois attorney general pointed out that Ameren has had its
electric delivery service rates increased several times in the past
six years and that the new energy legislation passed last month was
not intended to deny consumers the benefits of a rate decrease
before the new law takes effect. "The regulatory process is supposed
to protect ratepayers' pocketbooks, not just corporate profits,"
Madigan added, noting that the company recently increased its
dividend, and its stock is trading at a 52-week high.
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CUB, the attorney general's office, AARP Illinois and some
legislators campaigned over the summer for state regulators to give
Ameren customers a rate cut. One of the key findings of consumer
advocates is that Ameren is seeking an exorbitant return on equity
-- an allowed profit rate for shareholders. The analysis also found
that Ameren inflated estimates for operations and maintenance
expenses related to its electric distribution system.
The administrative law judge largely agreed with consumer
advocates in ordering the rate cut. Now, CUB is fighting to make
sure the decrease materializes on customer bills next year.
CUB is Illinois' leading nonprofit utility watchdog organization.
It was created by the Illinois legislature in 1983 to represent the
interests of residential and small-business utility customers. Since
then, CUB has saved consumers more than $10 billion by helping to
block rate hikes and secure refunds. For more information, call
CUB's Consumer Hotline at 1-800-669-5556 or visit
www.citizensutilityboard.org.
[Text from
news release from the
Citizens Utility
Board]
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